Stocks trading below a price-to-book (P/B) value of 1 are often considered undervalued. The P/B ratio compares a company’s market price to its book value . When this ratio is below 1, it means the stock is trading for less than the value of its assets, making it attractive to value investors. In this article, we look at some of the top stocks currently trading below a P/B ratio of 1.
Rajesh Exports Ltd
Rajesh Exports Limited founded in 1989, is a global leader in the gold business. Headquartered in Bangalore, India, the company has a strong presence across the entire gold value chain from refining to retailing. REL is the world’s largest gold processor, handling around 30 percent of the global gold production, and is also the biggest exporter of gold products from India.
Rajesh Exports aims to be a global leader in gold jewellery by offering high-quality products at the best prices. The company has advanced manufacturing and R&D facilities in Bangalore and a major gold refining unit in Switzerland. Known for producing gold jewellery at the lowest cost, REL has a large design collection of over 29,000 styles. With a strong network in India and global markets, it is focused on delivering world-class gold jewellery and investment products to customers worldwide.
With a market capitalization of Rs. 5,175 Crores, the shares of Rajesh Exports Limited opened at Rs. 175.50 per equity share, from its previous day’s closing price of Rs. 175.90, and made an intraday high of Rs. 178.09 per equity share. the price to book value is 0.33.
Rajesh Exports Ltd has a stock P/E ratio of 54.6, which is significantly higher than the industry average of 28.62, indicating that the stock may be overvalued based on earnings. Additionally, the stock is trading at a current market price (CMP) of Rs. 175.29, while its book value is Rs. 531, resulting in a price-to-book (P/B) ratio of 0.33. This suggests that the stock is trading at a steep discount to its book value, despite having a high P/E ratio.
JSW Holdings Ltd
JSW Holdings Ltd is a part of the JSW Group and primarily functions as a non-banking financial company (NBFC). It holds investments in various JSW Group companies, particularly in the steel and infrastructure sectors. The company’s main role is to manage and grow these strategic investments, contributing to the overall financial strength of the group.
JSW Holdings Ltd with a market capitalization of Rs. 19,393 crore, opened at Rs. 18,000 per share, up from the previous day’s closing price of Rs. 17,847. During the day, the stock touched an intraday high of Rs. 18,000 The company is currently trading at a low price-to-book value of 0.62.
JSW Holdings Ltd has a stock P/E ratio of 109, which is significantly higher than the industry average of 32.24, indicating that the stock may be overvalued based on earnings. Additionally, the stock is trading at a current market price (CMP) of Rs. 17,472, while its book value is Rs. 17,390 , resulting in a price-to-book (P/B) ratio of 0.62 This suggests that the stock is trading at a steep discount to its book value, despite having a high P/E ratio.
Oil & Natural Gas Corporation Ltd
Oil and Natural Gas Corporation (ONGC) is India’s largest government-owned oil and gas exploration and production company. Established in 1956, ONGC plays a key role in meeting the country’s energy needs by exploring, producing, and refining crude oil and natural gas. Headquartered in New Delhi, the company operates both onshore and offshore projects across India and abroad. ONGC is a Maharatna PSU (Public Sector Undertaking) and contributes a significant share to India’s domestic oil and gas production.
ONGC is one of India’s largest energy companies, employing over 27,000 people. The company contributes to about 71 percent of the country’s total oil and gas production. ONGC operates not only in India but also in 15 countries worldwide, highlighting its strong global presence in the oil and gas industry.
ONGC Ltd with a market capitalisation of Rs. 2,93,573 crore, opened at Rs. 233.39 per share, up from the previous day’s closing price of Rs. 233.39. During the day, the stock touched an intraday high of Rs. 235.37The company is currently trading at a low price-to-book value of 0.86.
ONGC has a stock P/E ratio of 8.14, which is significantly lower than the industry average of 10.89, indicating that the stock may be undervalued based on P/E ratio. Additionally, the stock is trading at a current market price (CMP) of Rs. 233.36, while its book value is Rs. 273, resulting in a price-to-book (P/B) ratio of 0.86.This suggests that the stock is trading at a steep discount to its book value.
Gujarat State Fertilizers & Chemicals Ltd
Gujarat State Fertilizers & Chemicals Ltd (GSFC) is a government backed company started in 1962. It makes a variety of fertilisers and industrial products like plastics, synthetic rubber, and man-made fibres. The company is a market leader in making Caprolactam, a key raw material used in Nylon 6. GSFC also leads in producing Nylon 6 polymer and its related compounds.
GSFC Ltd with a market capitalization of Rs. 7,879 crore, opened at Rs. 198.10 per share, up from the previous day’s closing price of Rs. 197.03. During the day, the stock touched an intraday high of Rs. 200.46 The company is currently trading at a low price-to-book value of 0.65.
GSFC has a stock P/E ratio of 12.3, which is significantly lower than the industry average of 27.7, indicating that the stock may be undervalued based on P/E ratio. Additionally, the stock is trading at a current market price (CMP) of Rs. 197.75, while its book value is Rs. 305, resulting in a price-to-book (P/B) ratio of 0.65.This suggests that the stock is trading at a steep discount to its book value.
Written by Sudeep
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